Hexaware TechnologiesLSE:35PJ 39 Gross Margin % is 41.12% as of Mar. 2026, which is 42% above its 10-year median of 28.87. GuruFocus rates LSE:35PJ with a GF Score™ of 39/100. The stock has 1 warning sign investors should review. Among 2,681 Software companies, Hexaware Technologies ranks better than 52.26% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hexaware Technologies had a gross margin of 41.12% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hexaware Technologies Gross Margin % Related Terms
Hexaware Technologies Gross Margin % Historical Data
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The historical data trend for Hexaware Technologies's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:35PJ vs IBM, ACN, FISV: Gross Margin % Comparison
For the Information Technology Services subindustry, Hexaware Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hexaware Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Hexaware Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hexaware Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hexaware Technologies (LSE:35PJ) has a Gross Margin % of 41.12% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hexaware Technologies and its competitors. This is 42% above median its historical median of 28.87. Over the past decade, Hexaware Technologies' Gross Margin % has ranged from 24.14 to 32.13. According to the industry distribution chart, Hexaware Technologies ranks #1280 out of 2681 companies in the Software industry, placing it in the top 47.7%.
Is Hexaware Technologies' Gross Margin % too high?
Hexaware Technologies' current Gross Margin % of 41.12% is 42% above median its 10-year median of 28.87. Over the past 10 years, this metric has ranged from a low of 24.14 to a high of 32.13. The Software industry median Gross Margin % is 40.41. Hexaware Technologies' value of 41.12% is 1.8% above this industry median. Based on the distribution chart, Hexaware Technologies ranks #1280 out of 2681 companies in the Software industry, which is above the industry midpoint. Overall, Hexaware Technologies has a GF Score™ of 39/100, reflecting its overall financial health beyond just this single metric.
How does Hexaware Technologies' Gross Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Hexaware Technologies ranks #1280 out of 2681 companies for Gross Margin %. This puts Hexaware Technologies in the upper half of its industry. The industry median Gross Margin % is 40.41. Hexaware Technologies' value of 41.12% is 1.8% above this benchmark. Historically, Hexaware Technologies' own Gross Margin % has ranged from 24.14 to 32.13 over the past decade. While the company's 10-year median is 28.87 vs. the industry median of 40.41, Hexaware Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.41, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hexaware Technologies's current Gross Margin % of 41.12% is 1.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hexaware Technologies and its competitors. For the Software industry, the median Gross Margin % is 40.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hexaware Technologies's current Gross Margin % is 41.12%, which is 42% above median its own 10-year median of 28.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hexaware Technologies stock overvalued right now?
Hexaware Technologies (LSE:35PJ) has a current Gross Margin % of 41.12%. The current Gross Margin % is 41.12%, which is 42% above median its 10-year median of 28.87 and 1.8% above the Software industry median of 40.41. Hexaware Technologies' overall GF Score™ is 39/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hexaware Technologies (LSE:35PJ), the current Gross Margin % is 41.12% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Hexaware Technologies Ltd is a digital and technology services company with artificial intelligence. The segments of the company are based on the industries served: Financial Services, Healthcare and Insurance, Manufacturing and Consumer, Hi-Tech and Professional Services, Banking, and Travel and Transportation. The firm generates key revenue from the Travel and Transportation segment. Geographically, the firm generates the majority of its revenue from the Americas.
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